Automated investment platform Composer raises $6 million

Composer, an automated investing platform for retail traders, raised $6 million in new funding led by Left Lane Capital.

Why is this important: Despite a pullback in the broader stock market, VCs still have an appetite for trading platforms that give retail traders better tools to make investments.

How it works: Composer offers retail investors an easy-to-use, no-code tool that can be used to create, test, and automatically execute sophisticated algorithmic trading strategies that were previously not easily accessible by the typical retail investor.

  • Investors on the platform can create so-called “symphonies” – systematic investment strategies that react to market conditions and rebalance portfolios based on user-defined parameters.
  • Once created, users can then test these strategies to see how they would have performed historically against the market, refine them, and share them with other investors on and off the platform.

The context: Founder and CEO Benjamin Rollert started creating Composer after trying to code his own systematic trading scripts.

  • “It was about implementing some basic systematic trading strategies that I knew institutions and hedge funds were using,” Rollert said. says Axios. “It was through this process that I discovered that it was actually extremely difficult to implement these types of strategies as a retail investor.”
  • And it hopes to position Composer as an alternative to retail-focused stock trading apps and automated investing platforms. “There is a very polarized set of offerings that are either very gamified trading apps or very smothering and paternalistic roboadvisors,” says Rollert.

Yes, but: For users who aren’t as adventurous or confident in creating their own trading strategies, Composer has an in-house investment team that provides templates that its users can invest in directly or easily modify to their liking.

Yes and: While other trading platforms are seeing a reduction in net inflows, Composer says it continues to grow despite a pullback in the broader stock market.

  • “There are more AUMs on the platform than net deposits,” says Left Lane Managing Partner Harley Miller. “Which shows that, overall, Composer customers are probably doing better than the market as a whole right now.”

To note : With this latest funding, Composer has raised a total of $11 million, which includes backing from investors including First Round Capital, AVG Basecamp, Draft Ventures, and Not Boring Capital.

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